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Date Published
February 01, 2024
News Type
Press Release
Link to Original
USAO, Eastern District of Michigan

DETROIT – Siemens Industry, Inc., a subsidiary of Siemens Corporation, has agreed to pay over $1 million to resolve possible False Claims Act violations, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Inspector General Rae Oliver Davis with the U.S. Department of Housing and Urban Development.

Siemens Industry, Inc., on behalf of itself and predecessor entity Siemens Building Technologies, Inc. (Siemens), agreed to pay $1,086,430 to resolve allegations under the False Claims Act related to a contract it entered into in 2011 with the Hamtramck Housing Commission, a HUD-funded public housing authority in Hamtramck, Michigan.  Under the contract, Siemens would install energy efficiency improvement measures at two Hamtramck public housing facilities.  During the development of that energy performance contract, Siemens calculated the amount of energy savings the improvement would deliver.  The Hamtramck Housing Commission submitted records to HUD using data from Siemens’s analysis.  The settlement resolves allegations that Siemens relied on inaccurate data in its analysis, which led to the United States paying a larger annual subsidy to the Hamtramck Housing Commission than it otherwise would have.

“Federal contractors are expected to deal honestly with federal agencies, even where there are intermediaries between the agency and the contractor,” said U.S. Attorney Ison.  “This settlement demonstrates our Office’s commitment to protecting the taxpayers’ money in any matter where the government ultimately suffers from misconduct by contractors.” 

“The False Claims Act is an important tool for holding accountable those who are dishonest in their dealings with government programs. This settlement represents HUD OIG’s commitment to protect the integrity of HUD’s programs and safeguard taxpayer dollars that support vulnerable communities who rely on them,” said Inspector General Rae Oliver Davis with the U.S. Department of Housing and Urban Development. “We appreciate the continued support of the United States Attorney in bringing this matter to today’s conclusion and look forward to our continued partnership.”

The civil settlement resolves the claims brought by Kevin Kondrat and Jessica Jones under the qui tam or whistleblower provisions of the False Claims Act.  Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery.  The whistleblowers will receive $179,260.85 from the settlement.  The qui tam case is captioned United States ex rel. Kondrat, et al. v. Siemens Corporation, et al., No. 21-10594 (E.D. Mich.). 

The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HUD-OIG.

The claims resolved by the settlements are allegations only; there has been no determination or admission of liability.